Coca-Cola issues warning on future earnings

Coca-Cola today said earnings for the rest of the year would lag Wall Street expectations because of weakness in key markets, …

Coca-Cola today said earnings for the rest of the year would lag Wall Street expectations because of weakness in key markets, further highlighting the divergent fortunes of the world's largest soft drink maker and its top rival, Pepsi.

Coca-Cola's new chairman and chief executive, Mr Neville Isdell, also said it might take time for the company to solve some of its problems in some markets.

Coca-Cola said worldwide case volume would be flat to up one per cent in the third quarter. By contrast, the largest Pepsi bottler last week said its worldwide case volume was up two per cent in its third quarter, ended September 4th.

Coca-Cola shares fell 5 per cent to a 16-month low on the New York Stock Exchange following the earnings warning. The stock dropped sharply last week when the largest Coca-Cola bottler also warned of a profit shortfall.